asked Her Majesty's Government:

Why they charged the Northern Ireland Water Service an interest rate of 5.8 per cent when such projects in Scotland are charged an interest rate of 5.1 per cent. [HL834]

The target rate of return for Northern Ireland Water Limited, determined by the Government in their role as sole shareholder, reflects the specialist analysis and advice contained in the report by UBS, published on 9 February 2006. This is subject to ongoing review. The position in Scotland is a matter for the Scottish Executive and HM Treasury.